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10 views13 pages

Assignment No

Uploaded by

hmasjad13
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© © All Rights Reserved
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ASSIGNMENT NO.

1
Submitted by:
Maryam Hafeez
Submitted to:
Sir Zeeshan
Topic:
Pearsons product moment
correlation coefficient
Date:
12 September 2024
Positive Correlation:

Increase or decrease Increase or decrease in


in first variable second variable

Eg: Height & weight

Negative Correlation:

Increase or decrease Increase or decrease in


in first variable second variable

Eg: Price & Quantity demanded


Correlation

 Correlation is a statistical tool that

helps to measure and analyse the

degree of relationship between two

variables.

 Correlation analysis deals with the

association between two or more

variables.
Types of Correlation

positive
correlation
correlation
negative
correlation
Karl Pearson’s Coefficient of
Correlation

 Pearson’s “r” is the most common correlation

coefficient.

 Karl Pearson’s Coefficient of Correlation

denoted by- ‘r’. The coefficient of correlation

‘r’ measure the degree of linear relationship

between two variables say x & y.

∑(xi−xˉ)(yi−yˉ)
r=√∑(xi−xˉ)2∑(yi−yˉ)2
Interpretation of Correlation
Coefficient (r)

 The value of Correlation coefficient ‘r’


ranges from -1 to +1
 If r=+1, then correlation between two
points indicates a perfect positive
linear correlation
 If r=−1, then correlation between two
points indicates a perfect negative
linear correlation
 If r=0 then there exist no correlation
between two variables.
Example:

ΣX = 15 | ΣY = 1.1405 |ΣXY = 4.1682 | ΣX² = 55 | ΣY²=0.31538


References:

1. Rastogi V. Fundamentals of
Biostatistics, 2nd ed. New Delhi: Ane
Book Pvt. Ltd.; 2011. pp 212-227.

2. Mukaka M. Statistics Corner: A guide


to appropriate use of Correlation
coefficient in medical research. Malawi
Medical Journal 2012; 24(3). pp 69-71.

3. Taylor R. Interpretation of the


Correlation Coefficient: A Basic Review.
JDMS 1990; 6. pp 35-39.
Limits of Correlation Coefficient

 The correlation coefficient lies between -

1 & +1 symbolically (-1 ≤ r ≥ 1).

 The correlation coefficient is

independent of the change of origin &

scale.

Value Of ‘R’ Correlation

 1.00 Perfect Or Ideal


 0.90--0.99 Excellent
 0.80--0.89 Very High Correlation
 0.60--0.79 High Correlation
 0.40--0.49 Medium Correlation
 0.20--0.39 Low Correlation
 0.0--0.19 Negligible Correlation
 0.00 No Correlation
Demerits
1. Tedious Calculations: Calculations of

coefficient of correlations by this

method is long, tedious and time

consuming.

2. Quantitative Measurements: Pearson’s

correlation can only be used for those

attributes which have quantitative

measurements.
Procedure For Computing The
Correlation Coefficient
 Calculate the sum of two series ‘∑x’
and ‘∑y’
 Square each division of ‘x’ and ‘y’ then
obtain the sum of the squared
deviation i.e. ∑x2 and ∑y2.
 Multiply each deviation under x with
each deviation under y & obtain the
product of ‘xy’ then obtain the sum of
the product like x, y i.e. ∑xy.
 Substitute the value in the formula.
Pearson’s product-moment
correlation coefficient
 This was introduced by Karl Pearson
(1867-1936)

 Pearson’s correlation coefficient


between two variables is defined the
covariance of the two variables
divided by the products and their
standard deviation.
Correlation

Auto Insurance cost Auto Value Auto body color

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